We exploit the cross-state, cross-time variation in bank tangible capital ratios-brought about by bank branch deregulation on a state-by-state basis-to identify the effects of bank capital pressures on employment and firm dynamics during two waves of changes in bank capital regulation. We show...

Since 2008, enormous efforts have been made worldwide to draft rules to prevent a reoccurence of the devastating financial effects of that year. In the process, bank business has been laid open to intense public and government scrutiny, and regulation of banking has grown to spectacular...